A1 Trading

Interest Rate

Interest rates are crucial to traders as they directly influence currency values and market dynamics, shaping investment decisions and trading strategies.
What is the interest rates scanner?
The interest rate scanner offers a visual representation of interest rates among major economies globally.
HOW CAN TRADERS USE THIS?
A higher interest rate is usually viewed as a bullish indicator for a currency, where a lower interest rate is often considered bearish. Higher interest rates tend to attract foreign investment, increasing the demand for and value of the home country's currency.

How is interest Rate Calculated on the EdgeFinder?

Interest Rates Scoring Concept

The interest rate breakdown is designed to measure changes in the 2-year yield in the US and forecasts from central banks.
1:
Take the 7 day moving average of the US02Y (2-year treasury yield)

Interest Rate Scoring For Indices, XAUUSD, USOIL, & BTCUSD

If price is above the moving average, -1
If price is below the moving average, +1
In this example, the interest rate forecast for the GBP is unchanged. This means that UK100 will receive a 0 score for interest rate.

If the forecast happened to be higher than current rates, UK100 would get a -1. And if the forecast was below current rates, the index would receive a +1.

Interest Rate Scoring For Currency Pairs

Concept: Uses current and next quarter’s forecasted interest rate for both currencies (Data from the Central Bank Forecast Page)

Currency A
If forecast > current, +1
If forecast < current, -1
If forecast = current, 0
Currency B
If forecast > current, -1
If forecast < current, +1
If forecast = current, 0
Frequently Asked Questions (FAQs)
View more FAQs here.

What time frames can you use the edgeFinder on?

The EdgeFinder gives directional bias and is not time based. Therefore, there is not a specific time frame that is best for the EdgeFinder.

What assets are included on the EdgeFinder?

Forex Majors:
AUDUSD, NZDUSD, USDZAR, GBPUSD, USDJPY, USDCAD, USDCHF, EURUSD

Forex Minors:
AUDCAD, AUDCHF, AUDJPY, AUDNZD, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, NZDCAD, NZDCHF, NZDJPY

Metals:
XAUUSD, PLATINUM, SILVER, COPPER

Energy:
USOIL

Indices:
GER30, US30, SPX500, US10Y, NAS100, JP225, UK100, RUSSELL

Bonds:
US10Y

Is the EdgeFinder realtime?

While the EdgeFinder is not necessarily realtime, it is fully automatic in its data collection. The EdgeFinder uses a variety of data sources and inputs. Most price data updates are on a 15 minute timer, while economic data updates every few hours. COT data updates weekly (as it only releases 1 time per week), and retail sentiment updates every 30 minutes.

Video Tutorials

How to Trade Interest Rate Data like a PRO: Interest Rates EXPLAINED!
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A1 Trading is a leading financial analysis and trading education company dedicated to empowering traders of all levels. Our team combines extensive market knowledge with cutting-edge technology to provide valuable insights and tools for traders worldwide.
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There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
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